Learn how to set up an asset account to track depreciation over time.
You can create an asset account in QuickBooks Online to track the current value and depreciation of your assets or the things that your company owns, like the following:
- Land
- Vehicles
- Buildings
- Machinery and equipment
These assets gradually lose value over time. This decrease in value is known as depreciation.
| Note: If you need to calculate your asset’s depreciation, we recommend you work with your accountant who knows the best methods. You may also want to check the chart of accounts so you can better understand what each account is for and what it does. |
Note: To calculate the depreciation of your asset, we recommend you work with your accountant.
Set up an asset account
- Go to Settings ⚙, then select Chart of accounts (Take me there).
- Select New.
- In the Account name field, enter the name of the account.
- In the Account type ▼ dropdown, select Fixed Assets or Other Assets.
- In the Detail type ▼ dropdown, select the option that closely describes the asset.
- In the Opening balance field, enter the opening balance amount. Then, select the starting date in the Date field.
Note: The opening balance can be $0. - Select Save.
- Go to Settings ⚙, then select Chart of Accounts.
- Select New.
- From the Account Type ▼ dropdown, select Fixed Assets.
- From the Detail Type ▼ dropdown, select the option that closely describes the asset.
- Name the account, then select the Track depreciation of this asset box.
- Enter the current value of your asset in the Original cost field and the as of date. If recording the loan, leave this blank.
- When you're done, select Save and Close.